UPDATE 5-Obama: Health overhaul could save U.S. trillions

Mon May 11, 2009 11:04pm BST
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* Obama hails a "watershed event" for healthcare reform

* Boehner says he sees no concrete plan, no enforcement

* Industry groups offer few details on cost-cutting (Adding quotes, reaction)

By David Alexander and Caren Bohan

WASHINGTON, May 11 (Reuters) - President Barack Obama said on Monday a coalition of U.S. health groups would cut rising costs by $2 trillion over the next decade, a move he said would encourage Congress to adopt major healthcare reform this year.

Obama, who has made reform a centerpiece of his political agenda, said a coalition representing doctors, hospitals, drug manufacturers, insurers and laborers had agreed to help reduce the rise in healthcare costs by 1.5 percentage points per year for 10 years.

"From 2010 to 2019 they are pledging to cut the rate of growth of national healthcare spending by 1.5 percentage points each year -- an amount that's equal to over $2 trillion," Obama said at an appearance announcing the pledge.

The president, flanked by representatives of the different industry groups, called the commitment "a watershed event in the long-elusive quest for healthcare reform."

Others were skeptical about the industry groups, some of which opposed reform in the 1990s. They asked how the administration would ensure the groups lived up to their pledge and whether there would be a way to enforce it.  Continued...

 
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